Are Your PCO Customers Costing You Money?

It takes money to make money. There are definitely costs associated with bringing in new customers. Those costs include advertising, sales efforts, promotional programs, and labor involved in initial client set up. These costs can add up, so make sure you know what the total is and factor this into your pricing.

Furthermore, just as the case with gaining new customers, it takes money to service existing customers. Understanding the cost components included in delivering that service can be a major eye-opener for you and how you choose to operate and sell your services.”

Figure out what the marketing cost is to bring in a new customer. Sure, you’re probably going to lose money during the first year. But in year two, these clients become very profitable. Here’s your incentive to boost your customer retention. That’s important, so let’s repeat that.


So, what does it cost to carry this customer and provide great service? You have to figure this out. Otherwise, how do you know if you’re price is even high enough to make a profit?

Profiting from your PCO Customers

The best way to figure this out is by determining what it costs to perform a pest control service on an hourly basis. Then, figure out how long it takes to perform each customer’s pest control service. Ask yourself these questions and explore how profitable each client is as an individual account.

• How many hours did you spend performing pest control services to this client?
• How many times did you have to visit the client’s home or business?
• Is this client keeping your employees on the phone constantly and making them unproductive?
• Look at the averages and ask yourself if you are spending more or less time with this client than the average?
• Is this client an outlier in any cost category?

Asking questions along these lines will help you spot clients that are sucking up your resources and you may even find that you’re losing money on some of these clients.

What can you do to correct this? Try addressing the issues that cause them to be “resource hogs”. If you cannot make adjustments to bring this client back in line, then raise their price until either they are profitable for you to service or they go away!

For tips on managing your PCO customers click here,  or contact us to learn more about how we can help you grow your Pest Control Business.